TVS Capital Funds Ltd, the private equity and venture capital arm of TVS Group, is all set to acquire a minority stake in Nykaa, an online beauty products retailer. The TVS Capital Funds will invest about $3.76 Mn (INR 25 Cr.).
Mint reported that, besides TVS investment in Series C fundraising of $9 Mn (INR 60-crore), high net-worth individuals, NRIs and family offices have also participated in this round.
The company will not disclose the investor’s identity.
Launched in 2012 by investment banker-turned entrepreneur, Falguni Nayar and her husband Sanjay Nayar, Nykaa is a beauty and wellness ecommerce platform. It offers about 300 brands and 15,000 products across wide categories including makeup, skincare, hair care, fragrances, bath & body and luxury products for both men and women.
With the capital raised, Nykaa is plans to acquire distribution rights in India for a global beauty brand. Besides, it will also launch private labels in the make-up & bath and body segments.
Last year, Forrester Research Inc and Google had reported that about half of all women online shoppers buy skincare, beauty and cosmetics products. While KPMG’s last year’s report indicates that the beauty-and-wellness industry in India which is currently about $6 Mn (INR 40 Cr.) will reach about $12 Mn (INR 80,000 Cr.) in 2017.